Though his election had been the focus of intense controversy which led eventually to a U.S. Supreme Court ruling in Bush v. Gore where the court ruled 5-4 in the former's favor, George W. Bush was sworn in as President on January 20, 2001. The first eight months of his term in office were relatively uneventful; however, it had become clear by that time that the economic boom of the 1990s was at an end. The year 2001 was plagued by a nine-month recession, witnessing the end of the boom psychology and performance, with output increasing only 0.3% and unemployment and business failures rising substantially. President Bush approved a large federal tax cut with the intent of revitalizing the economy.

On the morning of September 11, 2001, four airliners were hijacked; two of them were flown into the World Trade Center towers in New York City and another into the Pentagon in Arlington, Virginia, destroying both towers and taking just under 3,000 lives. The fourth plane crashed in southern Pennsylvania after some passengers fought back and are believed to have caused the piloting hijackers to crash. The immense shock, grief and anger brought on by the attacks profoundly altered the national mood; Osama bin Laden and his al Qaeda terrorist network sponsored the attacks and President Bush announced a "war on terror."

Congress approved several measures to protect against future attacks, including creating the Department of Homeland Security and passing the USA PATRIOT Act, which was criticized by groups such as the American Civil Liberties Union. The administration's military response was to invade Afghanistan on October 7, 2001, targeting al Qaeda and the Taliban government that supported and sheltered them. The U.S. was joined by a coalition which included forces from more than a dozen countries, and was successful in removing the Taliban from power, although fighting continues between the coalition and Afghans of various factions.

In 2002, the GDP growth rate rose to 2.8%. A major short-term problem in the first half of 2002 was a sharp decline in the stock market, fueled in part by the exposure of dubious accounting practices in some major corporations. Another was unemployment, which experienced the longest period of monthly increase since the Great Depression. The robustness of the market, combined with the unemployment rate, led some economists and politicians to refer to the situation as a "jobless recovery." Nevertheless, the United States between 2003-2005 has made a significant economic recovery from the post 9/11 recession, some attributing this to the President's tax cut policies.

War in Iraq

In his State of the Union address in January 2002, President Bush called Iran, Iraq, and North Korea an "axis of evil," accusing them of supporting terrorism and seeking to acquire weapons of mass destruction. The Bush administration began making a public case for an invasion of Iraq, on the grounds that Saddam Hussein supported terrorism, had violated the 1991 U.N.-imposed ceasefire, and possessed biological, chemical, and nuclear weapons, among other charges.

Some important allies of the U.S., including France, Germany, and Canada, did not believe that the evidence for the President's accusations was well-founded enough to justify a full-scale invasion, especially as military personnel were still needed in Afghanistan. The United Nations Security Council did not approve of the invasion, and the U.S. therefore provided most of the forces in the invasion of Iraq. With the support of a coalition whose major partners included the United Kingdom, Australia, Poland, Spain, and Italy, Iraq was invaded on March 20, 2003.

After six weeks of combat between the coalition and the Iraqi army, the invading forces had secured control of many key regions; Saddam had fled his palace, his regime clearly over; on May 1, Bush declared, under a sign reading "mission accomplished," that major ground operations were at an end. Saddam Hussein's sons Qusay and Uday were killed by U.S. forces; Saddam himself was captured in December 2003 and taken into custody. Nevertheless, fighting with the Iraqi insurgency continued and escalated through the 2004 U.S. national elections and beyond.

With casualties increasing and the cost of the invasion and reconstruction of Iraq estimated at over $200 billion, the war has lost about one-third of its supporters in the U.S. since the end of major operations was announced. Recent polls suggest that international displeasure with the United States is at an all-time high, with a majority of people in Europe believing that the country is too powerful and acts mainly in self-interest, and a vast majority in predominantly Muslim nations believing that the United States is arrogant, belligerent, or hateful to Islam.

George W. Bush was re-elected in November 2004, defeating Democratic contender John Kerry in an electoral vote, and receiving 51% of the popular vote. Republicans also made gains in both houses of Congress, contrary to recent mid-term electoral trends.

The 2005 Gulf Coast hurricanes

In August and September of 2005, two powerful hurricanes, Hurricane Katrina and Hurricane Rita, struck the Gulf Coast region. Katrina broke the levees of New Orleans and flooded 80% of the low-lying city. Extensive devastation and flooding also occurred from Mobile, Alabama west to Beaumont, Texas, with the Mississippi coastline especially hard hit. At least a thousand lives were lost in the worst domestic calamity since the 1906 San Francisco earthquake. Port facilities, oil rigs and refineries in the Gulf region were damaged, further increasing already high U.S. fuel prices.

Residents of New Orleans, many of whom were impoverished and unable (or unwilling) to evacuate before the storm, were trapped for days by the floodwaters. Thousands had to be rescued by the U.S. military from their rooftops or from unsanitary and dangerous shelters in public buildings. State and local authorities were overwhelmed by the scale of the events. Their response to the disaster, as well the federal government's, were harshly criticized by legislators and citizens who saw in the confusion a dangerous unreadiness and inability to preserve public safety. President Bush promised that the federal government would underwrite the rebuilding of New Orleans and other storm-damaged areas, the cost of which was estimated to run as high as $200 billion.

Source http://www.wikipedia.org